An increase in which of the following variables will cause an increase in the user cost of capital?
A) ?
B) ?t
C) ?et
D) all of the above
E) none of the above
A
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If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acquired checkable deposits, then the effective monetary multiplier for the banking system will be
A. 3. B. 4. C. 5. D. 6.
GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time
a. True b. False Indicate whether the statement is true or false
Bank reserves that exceed the reserve requirements set by the central bank are called:
A. required reserves. B. excess reserves. C. legal reserves. D. total reserves.
Consider a market that is in equilibrium. If it experiences a decrease in demand, what will happen? The demand curve will shift to the:
A. left, and the equilibrium price will increase and the equilibrium quantity will decrease. B. left, and the equilibrium price and quantity will fall. C. left, and the equilibrium price and quantity will rise. D. right, and the equilibrium price and quantity will fall.